The document discusses value chain focused agro enterprise development. It defines value chain as the series of activities that add value to raw materials culminating in a finished product for end users. Developing value chains can benefit farmers through higher returns and yields, consumers through better access and prices, and the economy through new business and employment. The document then outlines various opportunities for value chain management in agro processing like contract farming, grading, standardization and rural warehouses. It analyzes the strengths, weaknesses, opportunities and threats to the food processing sector in India. Finally, it discusses the needs and desires of consumers and challenges facing the market.
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Value chain focused agro enterprise development
1. VALUE CHAIN FOCUSED AGRO ENTERPRISE DEVELOPMENT
Er. A. Poshadri
SMS-Food Technology
Krishi Vigyan Kendra, PJTSAU, Adilabad, T.S
Email: achinna.fst@gmail.com
Cell No: +919492828965
2. Value Chain: The entire series of organizational work activities that add value at
each step beginning with the production/sourcing of raw materials
and ending with the finished product in the hands of end users.
โข Farmersโget better returns, higher yield, and lower the risks
drastically,
โข Consumers-have access to a greater variety, better prices and
new products,
โข Economy-gets benefitted with new business opportunities for the
entrepreneurs and the work force gets employment
6. Opportunities for Value Chain Management in Agro Processing
โข Contract Farming
โข BCT in FARMAR/IoT devices
โข On farm Processing
โข Grading & Sorting
โข Standardization
โข Self Help Group
โข Agmarknet
โข Rural Gudowns
โข DEMIC
โข Store at Door step
The Farming Produce
Trade and
Commerce (Promotion
and
Facilitation) Ordinance, 20
20
The Farmers
(Empowerment and
Protection) Agreement
on Price Assurance and
Farm Services Act, 2020
7. Strength ๏ผ Higher food Production
๏ผ Rising per capita income coupled with increasing awareness
among consumers
๏ผ Rapid urbanization is driving consumerism in Tier-II & Tier-III
cities
๏ผ Growing penetration of food and beverages manufacturing
companies in rural areas
๏ผ Tailor made flavors and region specific tastes
Weakness 1. Lack of state of Art Processing facilities
2. Limited shelf life for Milk, Meat and horticulture produce
3. Fresh produce preferred over processed foods
SWOT Analysis for Post harvest Management
8. Opportunities ๏ Rising business and product innovation
๏ Untapped rural markets
๏ Low-cost price strategy is adopted so as to make the product
affordable to the consumers
๏ Rising farm fresh produce and health foods
๏ Better product packaging and preservation
๏ India to be the youngest nation by 2025
๏ Seven Point Strategy for Doubling of farm income
Threats โข Product taste variations
โข Competition from multinational companies
โข Safety of Processed foods and adulteration
โข Increasing life style diseases in India
9. Gaps noticed
๏ผ No close substitutes of products such as milk, fresh
fruits and vegetables are available in the market
๏ผ Reality V/S claims against nutritional value by
processed foods/Organic foods
๏ผ Low switching cost makes consumers switch from one
supplier to another
๏ผ Low penetration in rural area and high prices for low
volume
๏ผ High cost of production and Poor export subsidies
10. Consumer Desires
โข Good and Healthy Foods
โข Available all year round
โข Sufficient Supply
โข Conveniently packaged
โข Sold in (super) all types of markets
(including e-retail platforms)
โข Long shelf life and exotic taste and flavours
โข Always Fresh
โข Appealing taste & Appearance
โข Quality/Autentically sourced Processed
Foods
โข High in available nutrients
11. Market Challenges
โข Globalisation
โข New distribution strategies
โข New Processing Technologies
โข New Materials/Additives
โข New Risks
โข Climate Change
โข Energy Efficiency
โข Water Supply
โข Procurement of
quality raw materials
โข Greed- Fraud
13. Preparation of idly mix:
Finger Millets
Soaking in water (20 h)
Grinding
Coarse batter 1
Mix 1 and 2
Addition of rice powder
Addition of seasonings
Addition of water
Mix to prepare batter
Fermentation of batter(5h,29หC)
Dehydration(Vacuum oven 90ยฐC
for at 700 mmHg)
Vacuum packaging in LDPE bags
Storage at 5ยฐC under
refrigeration
Black gram
soaking in water (4h)
Grinding
Smooth thick
Gelatinous paste 2
14. Instant Dosa mix
Finger millets
Soaking in water (20h)
Grinding
Coarse batter 1 Mix 1 and 2
Addition of seasonings
Addition of water
Mix to prepare dosa batter
Fermentation
Dehydration(Vacuum oven
90หC for at 700 mmHg)
Vacuum packaging in LDPE bags
Storage at 5หC under
refrigeration
Black gram
soaking in water (4h)
Grinding
Smooth thick
Gelatinous paste 2
17. Year
Minimum support price (MSP) for
raw red gram (Rs./100kg)
Red gram dhal Price
(Rs./100kg)
2014-2015 4350 12000
2015-2016 4625 9000
2016-2017 5050 8200
2017-2018 5450 6100
2018-2019 5675 6200
2019-2020 5800 8600
2020-2021 6000 10000
Cost of raw material and Dhal during last 5 years
18. Milling fractions obtained from 100 kg of raw red gram in commercial dhal
S.No Particulars
Market price
Rs./kg
Market
price
Rs./kg
1 Premium quality Dhal recovery is (57.5%) @ 100 5750
2 Second grade (B Grade) dhal recovery 18.6%) 65 1209
3 Dehusked whole or Un husked grains 4% 70 280
4 Husk and powder (20%) 15 300
Income from processing of 100 kg Red gram 7539
Raw Red gram MSP for 100 kg 6000
Processing charges in Rs. 500
Profit 1039
20. Particulars Pods Recovery A Grade B & C Grade
Quantity in Kg 100 75 40 35
Cost Per Kg( Rs.) 52.75 120 60
Total cost in (Rs.) 4800 2100
Total income per q 6900
MSP (2020-21) per q. in Rs. 5275
Profit in Rs. 1625
Edible Oil recovery( 40%)
Quantity of Per 35 kg of B&C Grade 14
Cost per kg oil (Rs.) 1820
Deoiled cake (55%) in kg 19.25
Deoiled cake cost per kg is Rs.30/kg 577.5
Total income from per 35 kg of B&C grade 2397.5
Total income in Rs. 9297.5
Total Net income in Rs. 4022.5
Groundnut Value addition
24. Tribal
Villages
Average weight in kg
ICMR
Standard
Weight in Kg
for 3 years
Average Height in cm
ICMR
Standard
Height in cm
for 3 years
1st day 90th Day
Girls: 14.0 kg
Boys: 14.0kg
1st day
90th day
Girls: 94 cm
Boys: 95.2
Shaikguda 10.9 11.3 83.8 84.0
Markaguda 11.3 11.7 84.2 84.5
Pataguda 11.3 11.8 84.3 84.6
Rajgad 11.2 11.5 84.2 84.4
Sheerguda
11.4 11.8 84.3
84.7
Raiguda 11.0 11.5 83.9 84.3
Average test
Group
11.2 11.6 0.4 kg 84.1 84.4 0.3 cm
Normal group 11.3 11.5 0.2kg 84.9 85.1
0.2cm
**Age 3 years: Per day 40g of millet based nutrient dense food for 90 days
(given 8 containers net weight of 500g per children through ANGANWADI centers: 36 members )
25. Fortification of Atta with Soy Flour
โข Permitted by Government of India
โข Blends well with atta
โข Atta can be substituted up to 10% with
defatted soy flour
โข Improved protein content
โ DSF has almost five times more
protein than atta
โข Increased freshness
โ Soy retains more moisture thus
increases freshness in roti
26. Fortification of Besan with Soy Flour
โข Blends very well with besan with no
beany flavor
โข Besan can be substituted up to 20%
with defatted soy flour
โข Extensive research has been done on
soy fortified traditional products
28. S. No Ingredients
Total cost of
Production
1 Raw material cost 3447
2 Labour charges @ Rs. 250 day /person for 3 days (2 Person) 1500
3 Packaging cost (250g container @ Rs. 3) total 400 no.s 1200
Total cost of production 6147
S.No Ingredients Sales value (Rs.)
1 Total number of units (size of 250g) 400
2 Projected selling Price ( minimum cost) / per unit size 35
3 Total sales value in Rs. is 14000
Benefit Cost Ratio is 2.27:1
Tomato Pickle :Total inputs cost in Rs.
Sales
29. Value addition to Spices
โข ICM Practices : Aflatoxin
level โ 30 ppb
33. Value Chain of Capsicum /Bell pepper production in Poly house
34. Mahua Processing- FPO
๏ผ KVK, Adilabad given technical inputs for Mahua processing, storage life and
nutritional information for Mahua based products to the Bheem bai Adivasi
Mahila Sakara Sangam, Utnoor
๏ผ Established Multipurpose flour mill for Processing of Mahua- millet
based foods.
35.
36. Year of Establishments 2019
Members 35
Active members 21
Quantity Processed (in kg) 600
Cost of raw materials Including packaging (in Rs.) 48000
Labour charges (in Rs.) 18000
Size of SKUโs (in kg) 0.5 to 1
Total expenditure or investment (in Rs.) 66000
MRP for SKU per kg (in Rs.) 400
Total earnings in Rs. 240000
Net Profit (in Rs.) 174000**
B:C ratio 3.63:1
Daily income per each member 500/-
***Profit Sharing: 25% depositing in the name of society 15% bonus for active
members and remaining will be the operational cost
Bheem bai Adivasi Mahila Sakara Sangam, Utnoor
43. Survey and Consensus BuildingINTERVENTIONS
๏ผEstablished 17 Multipurpose
processing mills at 17 remote
tribal hamlets
๏ผNumber of House holds in tribal
hamlet: 50- 80
๏ผBenefiting over 5200 tribal
household members @ a project
cost of Rs 5.2 lakhs (TSP)
๏ผOne Woman farmer is managing
the unit in each village
๏ผEarning an amount of Rs. 3200 to
3800 per month apart from
regular farm income
46. Advantages of multi-processing units in remote tribal Hamlets
๏ผ Process locally grown sorghum, millets, wheat, pulses and other foods for their
household consumption
๏ผ Benefiting over 1000 households or 5000 household members.
๏ผ Reduce the gaps in primary processing infrastructure for sorghum, millets,
soybean, red gram, Bengal gram and spices for domestic consumption
๏ผ Tribal families need not to go to mandal headquarters or major villages for flour
milling or grinding spices like chili and turmeric
๏ผ Preparation of varied diets from locally grown foods helped reduce nutritional
deficiencies among children and adolescent girls
๏ผ Tribal women were trained to produce malted foods, dhal milling and spice
powders for income generation.
48. Impact
๏ผ Paved the way for the production of
diverse balanced diet from locally
grown foods with minimum
expenditure or no cost.
49.
50. ๏ผ To reap benefit of scale in terms of
procurement of inputs, availing common
services and marketing of products.
๏ผ The States would identify food product
for a district keeping in view the existing
clusters and availability of raw material.
ONE District ONE Product (ODOP)
51. Up gradation of Individual Micro Food Processing Units
A Unit can avail credit-linked capital subsidy
@35% of the eligible project cost with a
maximum ceiling of Rs.10 lakh per unit.
The beneficiary contribution should be
minimum 10% and the balance should be
loan from a Bank.
52. Support to FPOs / SHGs / Cooperatives
The scheme would provide support t o F P O
s/ S H G s/ P r o d u c e r Cooperatives for
capital investment along the entire value
chain with credit linked grant @ 35%.
53. Seed Capital to SHG
๏ Seed capital @ Rs. 40,000/- per SHG member would be provided to those engaged
in food processing for working capital and purchase of small tools.
๏ Seed capital as grant would be provided to the SHG federation which, in turn,
would be extended to members as loan through the SHGs.
54. Common Infrastructure
Credit linked grant @35% would be provided to FPOs, SHGs, cooperatives, State owned
agencies and private entrepreneurs for development of common infrastructure.
55.
56. Conclusion
๏ผ Indiaโs large market size with growing incomes and changing life
styles also creates incredible market opportunities for food
producers, food processors, machinery makers, food technologists
and service providers in this sector.
๏ผ Poor agricultural performance can lead to inflation, farmer
distress and unrest and larger political and social disaffectionโ
all of which can hold back the economy.โ
57. References/Acknowledgement
โข MOFPI, GOI, ICRISAT, Taxguru.in
โข Olamspice International
โข Millets-Health master
โข I D fresh/JOVAKI AGROFOOD INDIA PVT LTD
โข Neni Food Products
โข Frubites products, Livoil,
โข Source trace,
โข Prajamitha Co-operative society, Utnoor
โข American Soybean Association, Institute of Food Technology (IFT)
โข Synthite Industries, KVK, Adilabad